Regulatory Alerts2012-09-28 | FMD/FED/CIR/GEN/01/082/10Revised Guidelines for the Operation of the Foreign Exchange Market: Wholesale Dutch Auction System-Spot (WDAS-SPT)
In 2011, the Central Bank of Nigeria (CBN) continued to adopt the Wholesale Dutch Auction System (WDAS-SPT) in the foreign exchange market, with guidelines as follows. Authorised Dealers submit bids via Reuters Dealing 3000 Xtra system between 9:00 AM and 10:30 AM on Mondays and Wednesdays for a minimum of $500,000 per auction. CBN reserves the right to determine the amount sold to an Authorised Dealer and announces auction results by 12:00 PM the same day. Settlement occurs on a spot basis (T+2), with funds purchased used exclusively for eligible transactions and not transferred within the inter-bank foreign exchange market. Bids should reflect immediate client demand, and Authorised Dealers are expected to maintain compliance with relevant laws and CBN guidelines or face appropriate sanctions.